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TCT, CCT, Title Transfer, and Annotation Defined(3-min read)

18Aug2016 Update: Before investing in real estate, please read this first: Invest in Property PROPERLY.

08Nov2015 Update: Click here for a more visual step by step guide.

In my previous posts, I provided insights on choosing a home loan provider, as well as the major steps in getting a home loan. Here I will provide the basic definitions of a TCT, a CCT as well as title transfer and annotation so that we are familiar with the key definitions before we dive into the title transfer process. In another post, I will detail the steps on title transfer and annotation
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What are the types of property titles anyway? In the Philippines, there are two usual kinds:

Transfer Certificate of Title (TCT)

Refers to the property title of a land, or a land with a built property in it (e.g. house and lot). This is the certificate of ownership of the land and including the air space in it (i.e the building or house). This details the property location (coordinates and geographical address), plus the size of the land, the registration number and the owner. It also details the previous TCT’s that were cancelled due to the transfer of ownership.
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Condominium Certificate of Title (CCT)

As the name implies, this certifies the ownership of a condominium unit. Haven’t seen one but it makes sense to expect that the CCT details the location of the condominium, the name and developer of the condominium, the rightful owner of the unit, and the location and size of the unit (floor, unit number, unit size, etc). Note though that CCT ownership only conveys ownership of the air space (where the unit is located), and not the lot space (where the whole condominium stands, and where all other units are located). This is a marked difference compared to TCT. Naturally, the TCT of the condominium will be named after the developer of the condominium.


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Now, what is a title transfer and what is annotation?
 
In layman’s terms (disclaimer: these are NOT legal definitions, but rather a friend’s attempt to explain to you dear reader. If you need legal definitions, consult a lawyer), title transfer signifies the transfer of ownership of a property usually via sale of that property (which in turn is usually documented via a deed of absolute sale). In a title transfer, the old title where the previous owner is named, is legally cancelled and superseded by a new title, wherein the new owner is named.
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Annotation meanwhile, is when a loan provider (e.g. a bank) writes entries on the title to signify that the property is mortgaged or loaned to the loan provider, albeit ownership remains with the named owner in the title. This annotation documents that there is a certain claim to the title, that the annotated party may actually call on that claim when necessary (i.e. in case of default), although for now, ownership still resides with the owner. In the title verification process, a clean title actually refers to a title with no annotations from a lender.

Now since we’ve gotten this settled, we can now proceed to the steps in a title transfer and annotation.

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328 thoughts on “TCT, CCT, Title Transfer, and Annotation Defined(3-min read)

  1. Hi! I’m drafting a contract for my client (seller) whose property is still named under the developer as it is still mortgaged with PagIbig. In the CCT, it is annotated that there’s a contract to sell between the developer and my client in favor of my client. Now this property is being sold to a cash buyer who is willing to pay the whole contract price — a portion of which will be paid to PagIbig and a portion to the seller. Once fully paid, Pagibig transfers the title to the seller and then the seller transfers the title to the buyer. In the contract to sell between seller and buyer (while property is still under developer’s name), is it correct to say that the seller (my client) is the absolute and registered owner of the property? Otherwise, what is the correct term to use given the annotation in the CCT? Thank you!

    1. Caveat, I am no lawyer po ah so if contract clauses best to consult a lawyer.
      Aside from saying the that seller is the owner of the property, maybe it is also ok to mention that such property is mortgaged with pag-ibig, and that the buyer will pay both pag-ibig and the seller. So at least it’s clear in the contract who the parties involved are. Anyway once this is notarized it shall be reviewed by the notarial lawyer.

  2. sir mali po definition niyo. Lien or Money claim po yung definition niyo. Update niyo nalang po para po walang mag kamali….

  3. We are selling our lot and already have some prospective buyers. The lot title is clean and no claims against it and all taxes have been paid to date. We will need a lawyer to help us go through the selling process up to the signing of the absolute sale contract. My question is, how much does a typical lawyer would charge us for this service? I heard some charges 1,500 to 5,000 pesos per hour and some will charge between 1 to 5% of the selling price? Can you shed light on what cases a lawyer would charge up to 5% of the selling price? Is this not too excessive?

    1. Sorry sir but we don’t have an estimate of the private lawyer fees. Some transactions weve had only went through the notary lawyer so only one lawyer for both parties and they only charge for the notarial fee, around 1% of selling price. I guess it depends per lawyer and location too.

    1. Hmmm that’s sounds odd. Ang alam ko unique ang TCT kasi it is referenced kapag may icacancel na lumang TCT kapag binili. Nonetheless all TCTs have descriptions naman nung location so I guess ok lang same number baka magkaiba location and technical descriptions


  4. https://polldaddy.com/js/rating/rating.jsMagtatanung lang po ako, may nabili po kc ako bahay at lupa , 2 po may ari nung lupa kinatatayuan nung bahay, isa po 80 sq.meter, at 40 sq meter . Ung pong 80 sq meter meron na po akong titulo dun po sa 40 sq meter, wala pa pong ako hawak nang titulo, kc po hinuhulugan ko pa sa may ari, tanung ko lang po,panu po computation pag magbabayad na ako na tax declaration nang bldg. Kc eh nasakop po nang bahay ung 80 at 40 sq meter na lupa

    1. Confirm nyo po sa munisipyo how much. Baka partial nung tax dec nung 2 may ari na binilhan ninyo. Mas maganda mapatitle nyo na ng solo yan para maayos docs ng property na pinaghirapan nyo.


  5. https://polldaddy.com/js/rating/rating.js
    https://polldaddy.com/js/rating/rating.js
    https://polldaddy.com/js/rating/rating.jsSir my nephew and I are the co owners of the lot. We are planning to make a loan from Pag ibig for the construction of the house and its my nephew who is a government employee will make a loan from Pag ibig. My problem is the pag ibig personnel inform my nephew that there should be only one owner of the lot so that he can be granted a loan. What shall I do Sir we only loaning for the construction materials and the payment is through salary deduction also. What shall we do so that we can push though our plan for house construction. Thank you Sir.

    1. I don’t understand why there should be one owner only. If both of you are named in the property title then both of you should sign in the loan documentations. Unless it is the policy of pag ibig not to lend to properties with multiple owners – you should clarify this with them. Or another issue might be only your nephew is qualified to loan as a member and you are not (are you a member or have you met the necessary savings months etc). Worst case scenario you can consider loans outside of pag ibig.

      1. https://polldaddy.com/js/rating/rating.jsThank you Sir for your advice, formerly I am a member of Pag ibig now I am retired as government employee. I am now a pensioner. I will check personally if they have such policy. What is in my mind  as co owner  I will give execute an agreement that I give  consent to my nephew that he can construct a house in our lot. I dont know if this is okey. Thank you again sir. God Bless.

        Maria H. Cabag Chief, Secondary Education and Planning, Policy and Research Division Department of Education Region VI – Western Visayas Duran Street, Iloilo City Tel. No. 033-336-28-16

        1. Well that’s also possible. If I were Pag Ibig, my lookouts will be to ensure only members get the benefits of housing loans and that only legal owners get to mortgage the properties with them. Hope they have accommodations for retired pensioners like you since you did your part anyway while you were still working. God bless.

  6. Hello po Mr. Geri, matulungan nyo sana ako sa problema ko. Naka bili me ng lupa sa banko pero nagka problema sila dahit ayaw umalis ng dating may ari, so pinalitan nila ng bagong Lupa. Yung binigay nilang bagong lupa ay pag aari na ng SPV. at nag dagdag pa ako ng bayad sa SPV.

    Ang problema po ngayon.
    1. Nabili ko po ang Lupa (agricultural) year 2010 pero ngayon pa lang maasikaso ang TCT. Hindi po nila kmi mabigyan ng bagong Deed of Sale ksi baka magka problema sila sa BIR.

    Ang Seller ng lupa ay SPV pero ang TCT title nya ay naka pangalan pa sa bangko so ako po ang 3rd party.
    meron sa kontrata na “As is Where is” kaya wala daw po silang maiitulong sa akin.

    Anong pwede ko pong gawain dito. Naway matulungan nyo ako.

    1. Ano po yung SPV?

      Totoo po na hindi na sila magrelease ng bagong Deed of Sale lalo na kung dated na yung nauna ninyong deed of sale. Check nyo po sa BIR kung magkano ang magiging penalties dahil late filing po ito. Gayunpaman, dapat magbigay ang bangko ng tax return showing na bayad na nila ang Capital Gains Tax based sa 2010 transaction ninyo.

      Meron po dapat ang bangko ng documents na sila ang rightful na may-ari ng lupa kahit SPV pa ang nakapangalan sa title, like annotation sa titulo na may utang si SPV sa kanila kaya may claim si bank sa lupa at kaya naforeclose nila ito. As is where is po talaga usually ang pagbil ng foreclosed properties (yung kundisyon ng property, no more renovation etc) but it should still be supported by documentation, especially yung kasundun ni SPV at ni bank. Ipakita nyo po sa RD ang documents ninyo (DOAS, other bank documents showing the banks claim sa title ni SPV). Then inquire with BIR ROD na nakakasakop sa property ninyo how much aabutin ng transfer taxes. Dapat din po kayong tulungan ni bank sa pagprovide ng kung anumang documents nila to prove na sila na ang owner ng property, kahit na SPV pa yung name. Goodluck po. Balitaan ninyo kami.

  7. Ano po ba ang sabi ni Pag-ibig? Are they willing to process the loan if mali yung title? If yes, baka willing si developer na revise yung title basta they have letter of guarantee from Pag Ibig or bank na approved na kayo ng loan. If approved na kayo ng loan then mafully pay na si developer and sa bank / pagibig na kayo may loan.

    But from what I know, lenders don't accept deficient titles so you must convince developer to revise the title since no one will lend to you given the present title. Check nyo rin baka namin dinedelay lang ni developer especially if inhouse kayo ngayon malaki kasi interest sa inhouse eh.

  8. Hi po

    magtanong lang po sna ako regarding sa Land Title namin, kumuha po kasi kami ng house and lot sa isang developer then yung title na binigay nila is 80sqm tpos po after 1 yr ininform nila kmi na yung actual lot ay naging 84sqm, inapply po nmin siya ng Housing loan sa PAGIBIG and naapprove namn po sya kya lng need dw po mabago yung title based sa actual na 84sqm. ayaw nmn po baguhin ng developer yung title.. babaguhin lng dw nila pag nafullpayment na nmin yung bhay. how come pa na iapply nmin sya sa pagibig kung iffull namin dba.. kya sna po matulungan nio ako kung may ibang option para maiapply nmin xa ng housing loan sa PAGIBIG or bank?

    Maraming Salamat!!

  9. Hi po

    magtanong lang po sna ako regarding sa Land Title namin, kumuha po kasi kami ng house and lot sa isang developer then yung title na binigay nila is 80sqm tpos po after 1 yr ininform nila kmi na yung actual lot ay naging 84sqm, inapply po nmin siya ng Housing loan sa PAGIBIG and naapprove namn po sya kya lng need dw po mabago yung title based sa actual na 84sqm. ayaw nmn po baguhin ng developer yung title.. babaguhin lng dw nila pag nafullpayment na nmin yung bhay. how come pa na iapply nmin sya sa pagibig kung iffull namin dba.. kya sna po matulungan nio ako kung may ibang option para maiapply nmin xa ng housing loan sa PAGIBIG or bank?

    Maraming Salamat!!

  10. Good afternoon, tanong ko lang po kung ano ang dapat po naming gawin sa lupa na kinatitirikan ng bahay namin.. Nabili po kasi siya ng lolo ko wayback 1975. Wala pong kasulatan and documents at all.. Nasa amin na po yung titulo ng lupa pero under pa rin po kay seller yung pangalan.. Sa tax declaration nya po na luma naka lagay po sa owner is yung dating may ari parin nung lupa, pero naka indicate din po dun is “HEIR: (pangalan po ng lolo ko)”.. tatay ko na po ngayon ang nagbabayad ng amilyar nung lupa. may documents pong hawak yung tatay ko na “Sworn Statement of True and Current Fair Market Value of Real Property” na nakalagay yung pangalan ng lolo ko as present owner ng lupa, nireceive ng Assesor's Office with rubber stamp.. pero po yung latest tax dec nya, nawala na po yung panglan ng lolo ko as HEIR… as of now, wala nman pong naghahabol na mga kamag anak nung seller ng lupa.. ano po kayang pwede naming gawin regarding this matter Sir/Ma'am???

  11. Good evening sir Geri! I'm Carla. I really find your site very helpful. Halos parehas ng case po yung saakin ni Shiela. Nangutang po ng money saakin kaya sinanla yung 2 title. Nagpanotary ako ng mortage agreement. Both signed. Hindi po siya nakabayad sa taning na panahon.

    Questions are…..

    Malaki po ba ang chances na mapasaakin yung title?
    Ano po ang dapat kong gawin para mapasaakin yung title?

    Thanks in advance 🙂

  12. Good evening sir Geri! I'm Carla. I really find your site very helpful. Halos parehas ng case po yung saakin ni Shiela. Nangutang po ng money saakin kaya sinanla yung 2 title. Nagpanotary ako ng mortage agreement. Both signed. Hindi po siya nakabayad sa taning na panahon.

    Questions are…..

    Malaki po ba ang chances na mapasaakin yung title?
    Ano po ang dapat kong gawin para mapasaakin yung title?

    Thanks in advance 🙂

  13. I think the old TCT remains valid but when you sell it, both spouse must agree to the sale and sign the documents as this is now conjugal property.

  14. Good pm ask ko lang po. Nakapurchased akk ng lot 105 sqm tapos ko na sya bayaran yung down payment the remaining balance is tru pagibig na. Na found out na di pala maclose kasi instead na east naging west.kha may technical description error and yun din ang records sa bureau of lands. Ano po ang gagawin. Thanks.

  15. Hi Geri, just want to clarify… i own a parcel of land as evidenced by the TCT i have but it was issued when i was still single. Now i want to sell it, do i need to request with RD to change it to me and my wife or the existing title is valid? thanks

  16. This is a case of misleading developers. Try nyo na po lumapit sa HLURB baka they can penalize these developers and pressure them to expedite your case. Goodluck and God bless po.

  17. Best to inquire directly with BIR po since they need to see whether yung agreement sa MOA and binding (like if example they are sister companies etc). But as a general rule po, dapat yung mismong developer na binilhan nyo at gumawa ng bahay ang may permit, license etc.

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